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5. American Steel Corporation is considering two investments. One is the purchase of a new continuous caster costing $100 million. The expected net present value

5. American Steel Corporation is considering two investments. One is the purchase of

a new continuous caster costing $100 million. The expected net present value of

this project is $20 million. The other alternative is the purchase of a supermarket

chain, also costing $100 million. It, too, has an expected net present value of

$20 million. The firm

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